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Wage garnishment is considered to be the last remedy of the creditors to collect or to demand the debtor to fulfill his obligation. The court usually conducts wage garnishment once the judgment has been rendered.

To make it easier for you to understand, imagine a debtor owning a credit card and the debtor uses such card to purchase his essential. However, due to debtor’s neglect in paying his debts and interests, the amount to be paid in his credit card increases up to a certain extent where the debtor can no longer pay.

The debtors may file in the court to ask for the payment of the debts, and the court, in turn, may issue judgment that would require the debtor’s employer to put the debtor’s salary on hold to pay the creditors. Such withholding of salary is what we simple call “garnishing” of wages.

Wage Garnishment Judgment Rendered

Wage Garnishment Judgment Rendered

Once the court has finally rendered its judgments and gave the creditors the go signal to garnish the wage of the debtor, the scenario usually goes like this: debtor’s salary is deducted a certain amount and such deductions will be given to the creditor. This is not limited to credit card debts. It may also apply to tax delinquency and child support.

Funds Exempted

But the government is not as harsh as it seems to be. After all, it is the duty of the State to protect its people. Therefore, there are funds that are exempted from garnishments. This means that only a certain percentage of the person’s wage is deducted.

This only implies that the debtor does not entirely go insolvent by not being able to get a monthly income. Another fund that is exempted from garnishing would be the debtor’s social security funds.

Only the Federal State may garnish these social securities funds. It is the duty of the bank to inform the debtor what his remedies are once he is served with an order from the court. Furthermore, other states offer funds that may be exempted.

Meaning to say, not all states have stricter laws when it comes to wage garnishing. There are still those who favor the interest of the debtors as well as the creditors.

Kinds of Wages

Kinds of Wages

There are different types of wages where wage garnishment applies. Wage garnishments may apply to supports on child and spouse. You monthly income falls on wage garnishment as well as your bonuses or other financial benefits you may gather from your employer. Another form of income that can be garnished would be retirement plans and even pensions.

It is also important to take note that state laws are the ones that determine the portion of wages to be garnished. There are states that only allow 15% of wage garnishment and there are those that imposes up to 25% of the salaries is to be deducted as part of garnishing such wages.